STORES Magazine - March 2008 - (Page 78)

NUTS AND BOLTS / INVENTORY TRACKING Advantages of a Unique Sort Multiple systems offer fulfillment flexibility for American Eagle Outfitters BY LIZ PARKS s a company with an expanding e-commerce business and two new retail formats, American Eagle Outfitters was facing some unique distribution challenges — including how to design a distribution facility that could efficiently pick and ship cases for its stores and items for consumers buying direct from its website. A That facility, which opened last May in Ottawa, Kan., allows the company “to share within a retail and direct-to-consumer distribution environment processes such as shipping, receiving and inventory storage,” says senior vice president of logistics and distribution Michael Fostyk. The 552,000-sq.-ft. Ottawa II facility, so named because it is the company’s second DC in that town, primarily services and the aerie and Martin+Osa Unit sorters provide formats. From it, AEO is capable of moving 25,000 an additional level SKUs and up to 300,000 items daily. of efficiency that Grand Rapids, Mich.-based Dematic, a long-time helps AEO turn its partner of AEO, provided the equipment and augoods faster, tomation that makes Ottawa II a multi-purpose fareducing inventory cility. Among other things, Ottawa II is the first and handling costs. AEO distribution facility to have two unit sorters — the Dematic high-speed RS 200 sorter and a Dematic pick-to-voice system used in the part of the facility dedicated to processing items for the aerie retail division. The facility, like AEO’s other DCs, also uses a Dematic pick-to-light system. The unit sorters provide an additional level of efficiency that helps AEO turn its goods faster, reducing inventory and handling costs. They allow AEO to efficiently 78 STORES / MARCH 2008 handle soft goods wrapped in polybags, “whether these are received or shipped wrapped in garment, plastic bags or shrink wrap,” says Dematic account manager Denny Verbuerg. “In their other facilities they use containers to convey these products, which entails double handling. “You not only have to handle the containers on the inbound and outbound side,” he says, “but you also have to keep track of those containers and recyWWW.STORES.ORG http://WWW.STORES.ORG

Table of Contents for the Digital Edition of STORES Magazine - March 2008

STORES Magazine - March 2008
Executive Editor's Page
President's Page
Sam’s Club Gets Tough on RFID Stragglers
Athletes for Hire
What Shoppers Think
Goodwill Hunting
10 Things You May Have Missed
Numbers Worth Counting
Full Price/Markdown
Retail People
Luxury’s Shrinking Purse
Workplace Law
First Look
Green Retailing
Cosmetic Sales
Inventory Tracking
Loeb Retail Letter
ARTS Update
Point of View
NRF News
Retail Industry Calendar
Last Laugh

STORES Magazine - March 2008